© 2005 by Nelson, a division of Thomson Canada Limited. 1 Business and Community Stakeholders...
-
Upload
abigail-walton -
Category
Documents
-
view
213 -
download
0
Transcript of © 2005 by Nelson, a division of Thomson Canada Limited. 1 Business and Community Stakeholders...
© 2005 by Nelson, a division of Thomson Canada Limited. 1
Business Business and and CommunitCommunity y StakeholdStakeholdersers
Search the WebThe Foundation Center is a clearinghouse that publishes the “The National Directory of Corporate Giving”: www.fdncenter.org
© 2005 by Nelson, a division of Thomson Canada Limited. 2
Chapter Fourteen Objectives• Discuss the reasons for community involvement,
various types of community projects, and management of community stakeholders
• Explain the pros and cons of corporate philanthropy
• Differentiate between strategic philanthropy, cause-related marketing and cause branding
• Characterize the nature of, magnitude of, and reasons for business and plant closings
• Address steps that a business might take before a decision to close is made
• Identify strategies that a business might employ after a decision to close has been made
© 2005 by Nelson, a division of Thomson Canada Limited. 3
Chapter Fourteen Outline• Community Involvement• Corporate Philanthropy or
Business Giving• Business and Plant Closings• Summary
© 2005 by Nelson, a division of Thomson Canada Limited. 4
Introduction to Chapter 14• Positive and negative effects of
the business stakeholder– Community involvement– Corporate philanthropy– Plant closings
© 2005 by Nelson, a division of Thomson Canada Limited. 5
Reasons for Community Involvement1. Business people are efficient problem
solvers.2. Employees gain satisfaction and improved
morale.3. A positive image facilitates hiring.4. Business gains prestige and community
acceptance.5. Social responsibility over government
regulation.6. A company benefits from helping institutions
essential to the continuation of business.
© 2005 by Nelson, a division of Thomson Canada Limited. 6
Community Involvement
Recognition through articles, awards, and commendations
Publicity about volunteer opportunities
Executives who have board memberships
Company-sponsored projects
Ongoing endorsement of programs by CEOs
Encourage Employee Volunteerism
© 2005 by Nelson, a division of Thomson Canada Limited. 7
Community Involvement
Company Benefits From Employee Volunteerism
• Indirect community benefits• Employee benefits• Bottom-line benefits
© 2005 by Nelson, a division of Thomson Canada Limited. 8
Community Involvement
Resourced-Based Giving• Assess resources• Assess competencies• Determine where resources
and competencies will achieve the most good
© 2005 by Nelson, a division of Thomson Canada Limited. 9
Managing Community Involvement• Business Stake in the Community
– Self-interest and preservation– Direct or indirect benefits
• Developing a Community Action Program– Knowing the community– Knowing the company’s resources– Selecting projects– Monitoring projects
© 2005 by Nelson, a division of Thomson Canada Limited. 10
Managing Community Involvement
• Demographics• Environmental
and land use• Infrastructure
and physical services
• Leadership
• Leisure• Local economy• Local education• Local
government• Local health and
human services
Community Needs Assessment
© 2005 by Nelson, a division of Thomson Canada Limited. 11
Managing Community Involvement
Knowing the Company’s Resources
Mix and range of resources•Personnel•Money•Meeting space•Equipment•Supplies•Time
© 2005 by Nelson, a division of Thomson Canada Limited. 12
Managing Community Involvement
Selecting Projects• Plan and organize projects• Meet cost effectives business standards• Capitalize on corporate talents and resources• Involve employees in projects• Select communities familiar to the corporation• Select projects with high probability of success• Use corporate policy to support ongoing programs• Select projects that allow people help themselves
© 2005 by Nelson, a division of Thomson Canada Limited. 13
Managing Community Involvement
Monitoring Projects• Review execution strategy for
congruence with plan and schedule
• Obtain feedback from participants
© 2005 by Nelson, a division of Thomson Canada Limited. 14
Managing Community Involvement
1. Knowing the Knowing the communitycommunity—The corporation shouldget involvedin the communities it knows.
1. Knowing the Knowing the communitycommunity—The corporation shouldget involvedin the communities it knows.
2. KnowingKnowingthe company’s the company’s resourcesresources—Community involvementmust be cost-effective.
2. KnowingKnowingthe company’s the company’s resourcesresources—Community involvementmust be cost-effective.
3. Selecting Selecting projectsprojects—Programs should affect and interest those employees involved.
3. Selecting Selecting projectsprojects—Programs should affect and interest those employees involved.
4. Monitoring Monitoring projectsprojects—Management must run communityinvolvement like other parts of the business.
4. Monitoring Monitoring projectsprojects—Management must run communityinvolvement like other parts of the business.
Developing Community Action Programs
© 2005 by Nelson, a division of Thomson Canada Limited. 15
Community Involvement of Foreign-Based Firms• 81% had community involvement
projects• 71% reported community
expectations were important parts of their business plans
• 50% were satisfied with their community involvement programs
© 2005 by Nelson, a division of Thomson Canada Limited. 16
Community Involvement of Foreign-Based Firms
Motivations• Moral obligations • Community expectations • Image strengthened • Self-interest
© 2005 by Nelson, a division of Thomson Canada Limited. 17
Business Giving:Why Do Companies Give?Nondonors: No evidence of charitable giving . . .
““What’s in it for Us”
“We Are a Good Citizen”
“We Care”
Competitiveness, even for companies with lofty goals, competitiveness still determines that corporate giving be strategic—aligned with profitability objectives.
© 2005 by Nelson, a division of Thomson Canada Limited. 18
Business Giving:Who To Give To?• Education• Health and human services• Civic and community activities• Culture and the arts • Other organizations
© 2005 by Nelson, a division of Thomson Canada Limited. 19
Business Giving:Managing Corporate Philanthropy• Public purpose partnerships• Global philanthropy
© 2005 by Nelson, a division of Thomson Canada Limited. 20
Business Giving:Managing Corporate Philanthropy
Public Purpose Partnerships• A for-profit business enters into a
cooperative agreement with a nonprofit for their mutual advantage– Reconciles financial and social goals
© 2005 by Nelson, a division of Thomson Canada Limited. 21
Business Giving:Managing Corporate Philanthropy
Strategic Philanthropy• When giving fits the firm’s overall
mission, goals or objectives by: – Contributing to a firm’s economic
success– Aligning with the firm’s business
endeavors
© 2005 by Nelson, a division of Thomson Canada Limited. 22
Business Giving:Managing Corporate Philanthropy
Cause-Related Marketing• Direct link between product or
service and charity• Purposes of cause-related marketing
– Global marketing– Image building– Marketing to interest groups
• Cause branding
© 2005 by Nelson, a division of Thomson Canada Limited. 23
Business Giving:Global Philanthropy - Advantages
•An improvedcorporate image
•A boost in market penetration
•Improved personal relations
•Improved government relations
© 2005 by Nelson, a division of Thomson Canada Limited. 24
Business and Plant Closings• What should business do?
– Before deciding to close:•Propose new ownership•Explore employee ownership
– After deciding to close:•Conduct community impact analysis•Provide advance notice•Provide transfer, relocation and
outplacement•Act to phase out business gradually•Assist community with replacement
industry
© 2005 by Nelson, a division of Thomson Canada Limited. 25
Business and Plant Closings
• Employee readiness for ownership• Union attitudes• Skills among employees• Products and markets• Technology• Proposed organizational structure• Potential funding sources
Employee Ownership: Factors
© 2005 by Nelson, a division of Thomson Canada Limited. 26
Business and Plant Closings
What groups will be
affected?
What groups will be
affected?
How will they be affected?How will they be affected?
What is the timing of initial and
later effects?
What is the timing of initial and
later effects?
What is magnitude of the effect?
What is magnitude of the effect?
What is the duration of the impact?
What is the duration of the impact?
To what extent will the impact be
diffused in the community?
To what extent will the impact be
diffused in the community?
Community Impact
© 2005 by Nelson, a division of Thomson Canada Limited. 27
Business and Plant Closings
Advance Notice• Worker Adjustment and Retraining
Notification Act• More notice than the law requires
Attracting Replacement Industry
• Cooperation • Assistance
© 2005 by Nelson, a division of Thomson Canada Limited. 28
Business and Plant Closings
Gradual Phase-Outs• Buys time for employees• Buys time for communities
Benefits• Transfer• Relocation• Outplacement
© 2005 by Nelson, a division of Thomson Canada Limited. 29
Business and Plant Closings
Factors in Plant Closing Assistance
• Size and impact of closing• Extent of corporate commitment• Length of time firm located in
community• The time the firm employed employees• Resources available to provide
assistance• Firm’s sense of social responsibility
© 2005 by Nelson, a division of Thomson Canada Limited. 30
Business and Plant Closings
Community Lawsuits• General Motors case
© 2005 by Nelson, a division of Thomson Canada Limited. 31
• Cause branding• Cause-related
marketing• Community
action program• Community
involvement
• Employee owned• Philanthropy • Resource-based
giving• Strategic
philanthropy• Third sector
Selected Key Terms